- 19 Sep 2022
- ICICIdirect Research
Indian Army to buy many defence equipment from domestic manufacturers
The Indian Army has issued multiple tenders to buy many defence equipment from domestic manufacturers for meeting critical requirements under emergency procurement procedures. The defence equipments include guns, missiles, drones, counter-drones, loiter munition, communication and optical systems, specialist vehicles, engineering equipment and alternate energy resources. Under the emergency route, the armed forces can procure weapons and equipment upto Rs 300 crore per order, with deliveries to be ensured within one year of signing the contract.
We believe the procurement of these defence equipment through emergency route will be done through private players and start-ups. As per media sources, the army is already in discussions with companies like Economic Explosives (subsidiary of Solar Industries) for surface to surface missiles, loitering munitions, surveillance drones, counter drone systems, etc. The army is also in discussions with Adani Defence for Unmanned Ariel Vehicles (UAVs). Companies like Data Patterns, Astra Microwave, Paras Defence, Premier Explosives may also benefit from this tender.